Term Life Insurance or Whole Life Insurance: Which is the Better Choice? http://insureme.us/term-life-insurance-life-insurance-choice/

Term Life Insurance or Whole Life Insurance: Which is the Better Choice?

http://insureme.us/term-life-insurance-life-insurance-choice/

Term Life Insurance is regarded as the most inexpensive of all life insurance policies.  It is actually a maximum death benefit that could be availed as low as the minimum dollar.  It also provides coverage for financial responsibilities to its holder, such as debts, mortgages, or college education, depending on the need of the user.  For term life insurance, no part of the consumer’s money is used for investment by the company.  The term policy premium increases as the insured grows older.  As with all other insurance policies, the insured has to go through a physical exam in order to be certain that they are insurable.  As stated above, it has a specified time frame, but the most popular are annual, 7-year, and 10-year policies.  The annual types increase slightly every year, while the 7- and 10-year plans remain the same for the period covered.

Whole Life Insurance, on the other hand, refers to insurance that lasts for an insured person’s lifetime.  As opposed to term life insurance’s fixed death benefit, whole life insurance has a cash value that earns more over time.  It can be used to accumulate wealth, and is considered to be the most basic form of cash value insurance.  The premium that you pay the company is used in investing in fixed-income securities, namely, stocks, bonds, and other money-market instruments.  Your beneficiary will receive a fixed death benefit, along with the balance of the savings account that has grown over time.